Trinidad and Tobago’s property market is slowly recovering. Prices fell around 20% during the recession, but there are signs of recovery, not least in demand for middle-income housing.
In the highly desirable West region near Port of Spain, interest is also slowly returning in upscale properties selling from TT$2 million to TT$8 million (US$312,500 to US$1,250,000).
The boom lasted from 1991 up to 2006, with house prices rising over 400% during this period, when the economy was boosted by the flourishing oil, natural gas and petrochemicals industries. Foreign investment poured in. Much new private housing was built in Port of Spain, in the northwest region, and the area around Point Lisas Industrial Estate, the centre of Trinidad and Tobago’s petrochemical industry.
Luxury apartments, townhouses, and gated communities became popular. Government housing projects also expanded. Construction and labour costs soared. Properties with price tags of TT$1.5 million (US$234,375) began to be considered cheap. In the high-end property market, properties sold for up to TT$20 million (US$3,125,000).
With many new developments coming on the market, it will take another year or two before all the upscale properties available are absorbed. Developers and investors are hopeful that overseas buyers will provide the needed boost for the market to be buoyant once more. Many properties are being offered at largely reduced prices.
In the residential rental market, rents for the expat market range from US$1,500 to US$10,000 per month. For middle-income locals, the typical monthly rate for apartments is from TT$1,000 to TT$5,000.
In the highly desirable West region near Port of Spain, interest is also slowly returning in upscale properties selling from TT$2 million to TT$8 million (US$312,500 to US$1,250,000).
The boom lasted from 1991 up to 2006, with house prices rising over 400% during this period, when the economy was boosted by the flourishing oil, natural gas and petrochemicals industries. Foreign investment poured in. Much new private housing was built in Port of Spain, in the northwest region, and the area around Point Lisas Industrial Estate, the centre of Trinidad and Tobago’s petrochemical industry.
Luxury apartments, townhouses, and gated communities became popular. Government housing projects also expanded. Construction and labour costs soared. Properties with price tags of TT$1.5 million (US$234,375) began to be considered cheap. In the high-end property market, properties sold for up to TT$20 million (US$3,125,000).
With many new developments coming on the market, it will take another year or two before all the upscale properties available are absorbed. Developers and investors are hopeful that overseas buyers will provide the needed boost for the market to be buoyant once more. Many properties are being offered at largely reduced prices.In the residential rental market, rents for the expat market range from US$1,500 to US$10,000 per month. For middle-income locals, the typical monthly rate for apartments is from TT$1,000 to TT$5,000.
Analysis of Trinidad and Tobago Residential Property Market »
RENTAL YIELDS
Last Updated: Dec 23, 2011
During 2010 rents fell quite dramatically in Trinidad. Rents are now in some cases half what was offered only 1 year ago. To take a couple of examples, rents now average US$1,000 for 120 square metre apartments, and US$1,800 for 300 square metre apartments – nice for tenants, disappointing for landlords. Gross rental yields levels are lower than ever seen in Jamaica, during 6 year history of data-gathering at the Global Property Guide.
TAXES AND COSTS
Last Updated: Feb 16, 2012
Rental Income: Rental income is taxed at a flat rate of 25%.
Property: For residential properties, real property tax is levied at 3% of the property’s market value.
Capital Gains: Generally, no capital gains tax is levied, except on properties sold within one year of acquisition which is taxed at a flat rate of 25%.
Inheritance: There are no inheritance taxes in the islands.
Residents: Residents are taxed on worldwide income at a flat rate of 25%.
Property: For residential properties, real property tax is levied at 3% of the property’s market value.
Capital Gains: Generally, no capital gains tax is levied, except on properties sold within one year of acquisition which is taxed at a flat rate of 25%.
Inheritance: There are no inheritance taxes in the islands.
Residents: Residents are taxed on worldwide income at a flat rate of 25%.
BUYING GUIDE
Last Updated: Mar 31, 2008
Roundtrip transaction costs range from 9% to 18.5% of the property's value. The wide variation is mainly due to stamp duty at 5% to 10% with the first TTD450,000 tax-exempt. The realtor’s fee is around 3% to 5% paid by the seller.
Buyer and seller pay for their own lawyer. Legal fees are at 0.5% - 1.5%, plus 15% VAT.
Buyer and seller pay for their own lawyer. Legal fees are at 0.5% - 1.5%, plus 15% VAT.
LANDLORD AND TENANT
Last Updated: Jun 15, 2006
Rent Control: Rents can be freely agreed, except for very small rentals covered by the Rent Restriction Act.Tenant Security: The landlord needs an eviction notice from the courts to evict a tenant. It takes an average of 192 days to evict a tenant in Trinidad and Tobago, according the the Lex Mundi project.
ECONOMIC GROWTH
Last Updated: Feb 01, 2011
Economic slowdown
Trinidad and Tobago (pop. 1.3 million) has an ecological and geographical diversity that is truly unmatched in the Caribbean region.Trinidad is a large and thriving island, its capital Port of Spain being densely populated, highly developed and industrialized.
Tobago is undeveloped and truly a natural paradise with its palm-lined sandy beaches, pristine coral reefs teeming with marine life, and lush rainforests.
Trinidad and Tobago merged in 1888 to form a single British colony, and became an independent member of the British Commonwealth in 1962. It finally became the Republic of Trinidad and Tobago in 1976.
Trinidad and Tobago has one of the highest per capita incomes in the Caribbean region, with GDP per capita of more than TT$119,000 (US$19,000) in 2008. It was also one of the fastest growing economies in the region, with an average GDP growth rate of 8.1% from 1997 to 2007.However, economic growth slowed to 3.4% in 2008, as the adverse impact of the global crisis spreads. The economy is projected to grow by just 0.5% in 2009.
CL Financial Group, the largest privately held conglomerate in the country, collapsed in January 2009 due to financial problems. The stock market declined sharply. Some steel and iron plants have also been shutdown. Construction activity has ground to a halt.
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